Source Energy Opens First Unit-Train-Capable Delivery Terminal

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Published: Thursday, 11 January 2018 13:52

Source Energy Services opened its first unit-train-capable delivery terminal for frac sand into the Western Canada Sedimentary Basin (WCSB) as companies deploy bigger fracs for higher results, according to the Alaska Highway News.

This allows Source to connect dedicated deliveries of frac sand from its mines in Wisconsin to Alberta. Frac sand demand in the WCSB is expected to increase by 28 percent this year and a further 31 percent to a total of 10.3 million tons in 2019, according to GMP FirstEnergy

The new facility expands Source’s operations at Fox Creek, Alberta, Canada, where it opened its first terminal in 2015. The company now has eight frac sand delivery terminals in Alberta, B.C. and Saskatchewan of varying sizes. A unit train capable terminal is also being built at Edson, Alberta.

Source said it plans to spend between $10 million and $20 million of its 2018 budget of $50 million to $65 million on terminal expansion projects.

The company will also spend $10 million to $15 million on development of additional sand delivery systems, $15 million to $20 million on production facilities, and $9 million to $12 million in mine development activities.

Source reported a 255 percent increase in sand sales in the third quarter of 2017 compared to the third quarter of 2016, leading to net income of $3.0 million compared to a net loss of $12.3 million in the previous year period.